Stock Track | Arcos Dorados Soars 5.13% Pre-market on Strong Q3 Earnings, EPS Beats Estimates

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Arcos Dorados Holdings Inc. (ARCO), the largest independent McDonald's franchisee in Latin America and the Caribbean, saw its stock soar 5.13% in pre-market trading on Wednesday following the release of its impressive third-quarter financial results.

The company reported a net income of $150.4 million for Q3 2025, with earnings per share (EPS) of $0.71, significantly outperforming analysts' expectations. The FactSet consensus estimate was $0.14 per share, indicating a substantial beat of 407%. Total revenue for the quarter reached $1.2 billion, slightly below the analyst consensus estimate of $1.229 billion but still representing a 5.11% increase from the same period last year.

Arcos Dorados' strong performance was further highlighted by its adjusted EBITDA of $201.1 million for the quarter. The company also reported robust systemwide comparable sales growth of 12.7% year-over-year, aligning with the company's blended inflation for the period. Digital channel sales, including Mobile App, Delivery, and Self-order Kiosks, rose 11.2% year-over-year in US dollars, accounting for 61% of systemwide sales in the quarter. These results demonstrate Arcos Dorados' successful digital transformation and operational efficiency in a challenging economic environment.

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